Research In Motion tops list of Canada's Top 100 Corporate R&D Spenders for 3rd year

Research In Motion
By Michelle Haag on 31 Oct 2012 03:25 pm EDT
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Research In Motion has once again taken the top spot on the list of Canada's Top 100 Corporate R&D Spenders according to results released today by Research Infosource, Inc. RIM spent a total of $1.54 billion in Fiscal 2011 on research, which is an increase of 10.8% over Fiscal 2010.

Though Ron Freedman, CEO of Research Infosource was a bit surprised by the increase overall in the Fiscal 2011 data, he said it was a pleasant surprise. Freedman also noted that the results were propelled by a 7.2% combined spending increase among the $100 Million Club – the 24 leading firms that spent at least $100 million on research in Fiscal 2011.

"…It’s great to see companies such as RIM and Bombardier maintaining their commitment to research, in the face of revenue pressure. In some respects each is betting the farm that today’s spending will translate into future sales.”
This is the third year in a row that Research In Motion has topped the list of R&D spenders. Though there have been cuts in other places in the company, it's good to see RIM putting so much into the future of the company and BlackBerry. As Freedman pointed out, “Research and development spending is the tool they use to create the jobs of tomorrow.

Discuss in the forums

Source: Research Infosource via TheRecord
Michelle Haag Michelle Haag "@_Miche11e_ and C0001B3B5" 1190 (articles) 1683 (forum posts)
13 comments

North-Face

Not surprising as they are back at innovating.
Hopefully this will all pay off and a successful BB10 launch will bring back some presently laid-off employees.

BB10~Believe!

nabil114

I believe the research and development that is the effective. It does not mean that you have spend large amounts of money in the research and development. The example would be the Apple which spends around the 3% of the sales. If you spend all of the research and development budget on the wireless technologies (mobile standard-essential patents), the products would not sell.

- Rezaur Rahman

THBW

Dude, Apple hasn't innovated in years. They are simply milking a concept they introduced over 6 years ago.

hurds

+1

Don't tell that to apple fans though. Apparently changing the size of the device is good enough for them.

CDM76

What ? You mean a taller screen and higher resolution screen is not out of this s world innovation ? Well then reshaping the earphones to look like the old sanyo's i had MUST be a scientific break through .... No ? LoL

limh5

LOL. Sanyo should sue Apple for its earpods.

drjames05

I hope you can appreciate that Apple spending 3% of revenue on R&D, if this is a true number is 2.4 billion a year. Moreover, they've increased R&D by a billion to 3.4 billion this month.

http://themarketsareopen.blogspot.ca/2012/11/aapl-apple-inc-nasdaqaapl-s...

I hate Apple as much as the next RIM fan, we can't compare the 2 companies based on 'percentage of revenue/net or gross profits on R&D'.

Puz_zled

This is one of several reasons why I will continue to love and support this company. You go RIM!
Support technological development in Canada......buy a BlackBerry.

stevepar

RIM #1 Bombardier #2 BOTH are great worldwide success stories

T_C

That's cool!

Since I have a BB and work at Bombardier, that just made me a little bit more proud!

Rootbrian

Awesome to see research in motion in the top 100!

jasonvan9

I dont know if it has anything to do with this program from the Canadian Government
http://www.cra-arc.gc.ca/txcrdt/sred-rsde/menu-eng.html

"Generally, a Canadian-controlled private corporation (CCPC) can earn an investment tax credit (ITC) of 35% up to the first $3 million of qualified expenditures for SR&ED carried out in Canada, and 20% on any excess amount."

a lot of companies do work and mark it under R&D to save money... common practice in canada

So RIM invested 1.54Billion and got a tax credit of approx. 309 million

Edge of Night

RIM is not a private corporation. Its publicly held.

This spending makes total sense. RIM is going to surprise a lot of people :)